Exclusive:Union demands SNP and UK ministers act over Cesscon Decom energy firm collapse and 'decimated' industries

The GMB union has branded Livingston-based Cesscon Decom closing its doors as “a worst-of-all-worlds outcome”. Jobs are poised to be lost, with staff potentially unable to obtain Universal Credit.

The Scotsman reported the chief executive of Cesscon, Lee Hanlon, emailed staff to tell them the company, which dismantles and recycles defunct offshore infrastructure, faces going into liquidation, with around 20 staff at risk of losing their jobs.

It has now emerged the decommissioning firm is subject to a wind-up petition at Livingston Sheriff Court.

READ MORE: 'Escalating crisis' as Scots decommissioning firm tells staff it can no longer trade

Louise Gilmour, secretary of GMB Scotland, has penned a letter to SNP Deputy First Minister Kate Forbes and Scottish Secretary Ian Murray, warning about the situation at Cesscon and the wider just transition.

In her letter, seen by The Scotsman, Ms Gilmour has cautioned the two governments “the current status of Cesscon Decom Ltd needs to be investigated and clarified”, as well as “the use of public money given how much has been invested”.

“Our members have not received any wages since May,” she wrote. “The firm has also not made payments into the pension funds since November 2023 despite making deductions to our members’ payslips up to June 2025.

“Thousands are owed to our members who are being left in the lurch by Mr Hanlon.”

Ms Gilmour stressed that “as a result of not being formally made redundant”, workers are also “unable to claim Universal Credit putting them into hardship”. She has called for “urgent assistance” in obtaining social security for the workers involved.

READ MORE: North Sea oil and gas workers braced for 'unjust transition' as SNP ministers have 'no plan'

In May, a warning was issued that the oil and gas sector was “sleepwalking into an unjust transition”. A report from the Just Transition Commission highlighted "urgent and ambitious action, investment and government leadership" was needed.

Ms Gilmour said: “It is just months since the fabrication yard at Methil was saved after the promises of a ‘just transition’ failed to materialise yet again.

“Millions of pounds of public funds have been put into Cesscon and developing the Methil site. It was heralded as a key component in the ‘just transition’. Its closure is becoming an all too typical part of the story in Scotland’s ‘just transition’.”

She added: “North Sea jobs are being decimated, with no viable alternatives in renewable energy, whilst even jobs in decommissioning are being lost. This is a worst-of-all-worlds outcome.

READ MORE: North Sea boss warns 'polarised' oil and gas debate putting jobs at risk and makes Rosebank prediction

“The site at Methil is fit for purpose. We have rigs that need to be decommissioned, and more importantly, it has a workforce ready and able. There is no reason why decommissioning work cannot continue at the site. However, it will require political leaders to urgently broker a deal for the lease of the site and further contracts.”

A Scottish Government spokesperson said: “Funding to regenerate a derelict site into an industrial unit was provided to Fife Council.

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“The council has indicated that the land, which is owned by Scottish Enterprise, was leased to Cesscon Decom on commercial terms and that the improvements made to the site remain in place and continue to represent a valuable asset for future use by other operators at the Energy Park in Methil."

A UK government spokesperson said: "We understand this will be a deeply concerning time for the workers and their families. The UK government worked at pace to retain Harland & Wolff at the Methil site and will continue to work on delivering a fair and prosperous transition in our energy sector."

Cesscon Decom and Mr Hanlon could not be reached for comment.